National University Of Modern Languages Islamabad

Name: Abrar Ishaq

Roll No. 9201023

Class : BBA 3A MORNING

Subject: Business Finance

Assignment No. (03)

Submitted To: Mam Nosheen

Topic:

Issuance of bonds and stocks in Pakistan

 Issuance of Bonds in Pakistan

In the financial market of Pakistan bonds are either issued by Government or corporate secretary.

 Government
 Corporate entity
1. Government bonds

Government bonds is a debit security that Government gets as a loan to assist government
spending, in most times issued as a local country’s interest. Various types of bonds issued by
Government of Pakistan are as follows :-

I. PAKISTAN INVESTMENT BONDS (PIBS) (semi-annual Coupon)

II. MARKET TREASURY BILLS (T-BILLS) ( Zero Coupon Bonds)
III. FEDERAL INVESTMENT BONDS ( FIB) ( in 1994 Semi -Annual Coupon)
IV. US SPECIAL DOLLAR BONDS (US-SDB) ( Semi-Annual Coupon)
V. WAPDA BONDS
VI. NATIONAL SAVING CERTIFICATES ( NSC) ( Short term certificates)

It also has following more products:-

 Defence saving certificate

 Behbood saving certificate
 National Savings Home
 Special Savings Certificate
 Regular income savings Certificate
 Shuhada welfare account
 National prize bonds ( Bearer)
 Premium Prize bonds ( Registered)
 Pensioners Benefit account
2. Corporate Bonds
 In Pakistan these are commonly known as Term Finance Certificate. These are issued for a
specified time with assurance of principal amount plus interest to the bond holder.

Corporate bonds include:-

I. Term Finance Certificates (TFCs)

II. Sukuk certificates (SKC)
III. Listed Sukuk
IV. Privately placed Sukuk
V. Registered bonds (RB)
VI. Corporate Bonds (CB)
VII. Participation Term Certificates (PTCs)
VIII. Commercial Papers (CP)
IX. Privately Placed Commercial Papers
X. Privately placed TFCs (PTFCs)

Issuance of Stocks in Pakistan

In Pakistan two types of stocks are issued

 Preferred Stock
 Common Stock

All the listed companies on Pakistan Stock Exchanges issue these stocks. More than 500
companies are listed with more than 7 trillion market capitalization.These companies are
distributed amongst more than 35 sectors or group of industries. Pakistan’s equity market had
been divided in Four segments:

Listed Companies in PSX

Some big companies listed in PSX which issue the stocks in markets for general public.

 Oil and gas Dev. And UBL

 Pak tobacco and k. Electric
 Nestle Pakistan and Fauji Fertilizer
 Lucky Cement and Engro group
 Pak Petroleum and Mari Petroleum
 MCB Ltd. And Habib Bank Ltd. Meezan Bank Ltd
 Colgate palm and St. Chartered Bank
 Textile Group and PIAA ( Pakistan International Air lines Corp.)
 Air Blue and JS Bank